Is service tax applicable on commission received

M/s. Infinium Motors Pvt. Limited Versus Commissioner of Central Excise, Ahmedabad ? Service Tax ? CESTAT, AHMEDABAD ? Tri ? Demand ? Motor Vehicle Services and Business Auxiliary Services ? they were only engaged in selling of cars and incentive/ discount is received by whatever name it is called, cannot be taxed under Business Auxiliary Service ? Since the learned advocate for the appellant is seeking remand to submit documentary evidence before the learned Commissioner (Appeal) in respect of the arguments, I find it appropriate that the matter be remanded at this stage itself ? Appeal is allowed by way of remand ? 2011 (7) TMI 152 ? CESTAT, AHMEDABAD ? [2012] 36 STT 13 (AHD ? CESTAT) ? ST/108 of 2011 ? - Dated:- 27-7-2011

In 'Euro RSCG Advertising Limited V. Commissioner of Service Tax, Bangalore' 2007 -TMI - 1721 - CESTAT, BANGALORE the tribunal held that cash discount is an income from payment of bills in advance and not from services rendered to clients and does not attract service tax. In addition to this the appellants received incentives from certain publications after they reached certain targets of advertising business given to them. This incentive is called as target incentive. It is in no way connected to the service rendered to the clients nor is billed to clients.

you need to enquire more about these cases, as i could gather only the judgement portion which has been produced above. after reading the judgements i came to conclusion that incentives should not be liable for s.tax.

In the new negative list regime since 01-04-2012, the target incentive may attract service tax. 

In the new negative list regime post 01-07-2012, the target incentive may attract service tax.